The average person may not have the same investment options as the ultra-wealthy. Although you can open a brokerage account and get into real estate, there are some assets you cannot access. Explore these assets to see which ones are only available to the wealthy.
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What assets are available to the ultra-high net worth online?
Hedge fund
“These funds have significant minimum investment requirements, typically $1 million or more, and are limited to accredited investors,” says Jeff Rose, CFP® and founder of Good Financial Cents. speaks. “We offer a variety of complex investment strategies, including short selling and leverage. For example, Bridgewater Associates, one of the world's largest hedge funds, is known for its high minimum investment requirements.”
Unless you have at least $1 million in investment capital, you may not have access to hedge funds. These are often special assets that the average investor can only read about.
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art and collectibles
“Common assets available only to the wealthy are often fine art,” says Sebastian Janier. “This asset allows you to take advantage of the fact that only one copy of a very famous work of art exists, so it retains its value and typically increases in value over time.” Available to the wealthy One of his assets is art. Because wealthy people are invited to special gallery opening nights and have access to information about valuable art to invest in. The average investor may have never even heard of these gallery nights or events.
“High-end art by famous artists like Picasso and Basquiat can cost millions of dollars,” Rose added. “Similarly, collectibles such as rare vintage cars or fine wines like Romanée-Conti wines can be very valuable.” Ordinary investors don't have the capital and the associated costs. You might not even consider the idea of buying a multi-thousand dollar bottle of wine or a piece of art because you can't handle the risk.
luxury real estate
“Luxury real estate also includes multi-million dollar properties in exclusive locations like Beverly Hills and Manhattan,” Rose said. “Such real estate is not just a home, but also a status symbol and an investment opportunity. For example, a penthouse in New York City can be worth tens of millions of dollars.”
Regular investors may have access to local real estate or crowdfunded real estate projects, but they don't have the capital needed to break into luxury real estate. These multi-million dollar listings that you often see on TV shows are only available to the wealthy.
commercial real estate
“Another asset that is only available to the wealthy is large apartments and commercial buildings,” Jania commented. “Both of these assets require large down payments to close the deal, but are inaccessible to the general public.” Wealthy investors buy large commercial spaces and then lease the land. or form partnerships to attract developer interest.
trailer park ownership
“For trailer parks and mobile home parks, you have to close in cash because they require a lot of capital and are often not mortgageable,” Jania commented on this unique investment. “Furthermore, wealthy people can rent out land in these parks to many people and collect rent from it.” Many investors may not think about trailer park ownership, but this There is potential for significant returns on seed investments.
exotic vehicle
“Another asset that is only available to the wealthy is exotic vehicles that are collectibles,” Jania said. “For these, we utilize the same principles as high-end art: uniqueness and scarcity of supply. These are sold at very high prices and are out of reach for the average person.”
While we may not think of vehicles as investments, the truth is that rare vehicles and rare collectibles can increase in value when stored in a warehouse. The average investor doesn't have the money or space needed to take such action.
collector watch
“These watches can be worth anywhere from tens of thousands of dollars to millions of dollars,” Jania said. “Like the other assets mentioned, these items also take advantage of their collectability and low supply, which is what drives their prices so high.” They are known for their exclusivity as you may not even be able to purchase them even if you raise the funds. Some of these watches are rare and have little supply on the market, making them good investments.
private equity fund
“These funds, like Blackstone and KKR, require large investments and are primarily accessible to accredited investors,” Rose commented. “They focus on investing in and acquiring private companies and require long-term commitments and larger capital.”Regular investors can allocate their money to mutual funds and index funds But private equity funds are not accessible. Because you need connections and capital to get started in this field.
venture capital
“Investing in startups and early-stage companies often requires significant capital and a high risk tolerance,” Rose said. “Ultra-high-net-worth individuals may invest in venture capital funds or directly in startups like Uber in the early stages, but this requires both large amounts of capital and access to investment opportunities. .”
A key investment opportunity, often reserved for the ultra-high net worth, is the ability to put money into start-up companies. If you are an average investor, you may not have heard of these companies until they are listed on the stock market. The ultra-wealthy can invest in these companies before the general public knows about it. These investments can yield huge returns if the startup grows.
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This article originally appeared on GOBankingRates.com: Investing for the ultra-wealthy: 9 assets only available to the wealthy
